Some countries have more complexity to registering a new company than others, and perhaps it’s the establishment of a new legal entity that is an unlocker to the free credits.
I don’t know if that’s true of India or not, but I like to give comment authors the benefit of the doubt that being specific about the geography was helpful context here
India is very bureaucratic and slow for starting a new business new entity. It ranked 63rd on the most recent world bank survey of 2020[1], and it is even more painful to close one.
[1 ]https://openknowledge.worldbank.org/entities/publication/130...
So that report was discontinued after relatively proven statistical gaming and interference by several countries, doesn’t exist post 2020. Post 2020 SPICE+ launched making registration trivially fast. However really the trick isn’t creating and closing companies, it’s that the fact majority of reporting that would catch scam companies like these just get ignored and gather small civil penalties payable years later or not at all, while keeping up with major reporting that might close their bank accounts… it’s a very disorganised system that facilitates a lot of unpleasant activity.
[delayed]
What's the scam? Generally a country's governance system wouldn't get involved in a dispute this trivial between a foreign company and an individual.